How Human Resources & Company Culture Are Related

The human resources department is responsible for recruiting, interviewing, and placing new hires. But it doesn’t just end at hiring and firing. There are a handful human resources responsibilities that every organization has. In fact, they are responsible for managing the entire employee lifecycle—including onboarding, training, payroll, and handling disciplinary action. What people may not realize is how pivotal human resources is to a company’s culture. Even bigger organizations can sometimes fail to understand the depth of this correlation.

Company culture consists of the values, attitudes, and ethics of a business. These are the behaviors that determine how a company handles internal and external situations. Essentially, culture is how people do things. When it comes to learning more about your own company culture, do your best to become an impartial observer. You can consider HR the “caretaker” of culture. Here’s how human resources and company culture are related.

People Make the Culture

It goes without saying that the people you hire help create the company culture you hope to cultivate. And because HR is responsible for hiring, they are also responsible for placing people who both fit with the company culture or help create the company culture they envision. Part of hiring the right people means hiring slowly and carefully. Fast hires can create higher turnover rates, and when you’re hiring too quickly, chances are you’re overlooking red flags or requirements that matter most.

Best Onboarding Practices

Onboarding helps increase engagement and retention. The social and organizational process of integrating an employee helps set initial impressions and expectations. An employee that doesn’t go through a proper onboarding process is likely to be confused, less productive, and to judge the company’s structure based on their inability to offer proper guidance early on. Onboarding also helps new team members learn about how they fit into an organization, and how relationships are facilitated in the workplace.

Employee Engagement

Employee engagement is critical in any company. But what is employee engagement, anyway? Employee engagement refers to the emotional and mental connection an employee has with the company. Multiple studies have found that high engagement results in better productivity. And better productivity improves profit. This domino effect can make all the difference in the success of your business.

Human resources is responsible for setting the tone for that engagement and measuring its success. But this is easier said than done. But measuring engagement can be very difficult, and is often easier said than done. One way human resources can spearhead measurement is by sending out surveys. The survey should help identify what’s important to your employees and how you can improve. There are companies that are specifically employee engagement survey providers, and working with a reputable third party company can help ensure everything is on the right track.

Creating a System of Recognition

We discussed how employee engagement plays a big role in company culture. And one of the best ways to improve engagement is to create a system for recognition and/or rewards. According to one  Achievers’ study, 75% of employees who received recognition for their job reported feeling satisfied in their position—even when that recognition was information.

When you show appreciation for a job well done, it goes a long way. Employees want to know that their efforts don’t go unnoticed, and when they feel appreciated, they’re more likely to feel proud of their work and the company in general.

While not every company has the budget to offer rewards, there are many creative ways to reward your employees, such as offering remote work days or additional vacation time. Always do your research before you create incentives; human resources are responsible for creating healthy reward systems that recognize hard work without creating unhealthy competition.

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